Introduction
Most advanced economies have over the past decades seen a shift away from industry based employment structure towards service-based sectors instead[1]. This article examines the key psychosocial hazards for the service sector. In addition, it examines the key psychosocial hazards and issues facing by the less commonly examined sub-sectors/ industries included in the service sector, namely: transport, retail, banking and finance, and postal and telecommunication. A commentary of prevention and management interventions for psychosocial risks is discussed, and examples drawn on from within this sector are included.
What is the service sector?
This sector provides services to the general population and to businesses. It includes the provision of time and knowledge during which products (including advice, access, attention, discussion, experience) and other services are provided. The service sector is reliant more on human capital and less on natural capital. Activities associated with this sector, include: retail and wholesale sales, transportation and distribution, hospitality and tourism, banking and insurance, healthcare, postal and courier services, retail and distribution, environmental services and public services[2].
Key statistics in the service sector
The statistics on the service sector demonstrate its importance in supporting economies and generating jobs. Services are the most dynamic economic activity in the EU. They account for around 75% of GDP and employment[2]. Eurostat data show that three out of every four jobs are in the service sector. In 2021, employment in services represented 73% of total EU employment, compared to 65% in 2000. In contrast, employment in industry, including construction, fell from 27% in 2000 to 23% in 2021 and employment in agriculture halved from 9% to 4%[3].
Psychosocial risks in the service sector
The diverse nature of the sub-sectors and industries within the service sector means that employees are typically exposed to diverse working conditions and different psychosocial hazards. However, there are some similarities in working conditions within the service sector, and, moreover, some commonly experienced psychosocial issues. The current section aims to outline these commonly observed and experienced psychosocial issues in the service sector.
A key aspect and defining component of the service industry is its reliance on the interaction with customers, clients and patients[4]. Work in the service sector is going along with the expectation from society to show a high level of customer service (towards customers, patients or clients) which includes courtesy and friendliness in service workers. Data from the European Working Conditions Telephone Survey (EWCTS 2021) show that 48.5% of workers in commerce and hospitality, 33.8% in financial and other services and 23% in public administration, education and health report that their job always involves direct contact with customers, pupils or patients. The average for all sectors is 27%[5]. Service sector staff, therefore, are often expected to demonstrate a subordinate role to the customer, where importance is placed on customer satisfaction and these workers are pressured to meet the needs and desires of their customers. Consequently, this may place them in a position where they have difficulty leaving an undesired situation or disagreeing with a customer[6]. For example, Guerrier and Adib[7] describe a situation where a female hotel employee was dismissed after slapping a male customer who had harassed her, or where management had been reluctant to support a staff member who had been racially abused as it involved a high spending customer. Customers' expectations of workers to be friendly and approachable can lead to emotional dissonance, a discrepancy between felt and expressed emotions. Emotional dissonance occurs when workers are expected to express emotions that they do not actually feel in a given situation. It is one of the most stressful aspects of service work. Data show that 42% of service workers who interact with clients state that they have to hide their feelings[8]. However, when emotional demands are seen as part of the job (e.g. coping with stressful customer situations), their negative effects are significantly reduced by strong social support at work[9].
Workers in the service sector also experience more adverse social behaviours. Some examples of typical working conditions for many service sector employees include:
- providing face-to-face service to members of the public (e.g. customer service personal within the transportation sector);
- handling cash transactions in one form or another (e.g. cashiers within retail stores);
- providing services early in the morning or late at night (e.g. taxi drivers who work long hours);
- employing staff who work alone or in small numbers (e.g. ticket inspectors who work alone on trains); and
- being located in disadvantaged areas (e.g. postal and telecommunication workers who work alone in remote locations).
This is supported in the findings from the EWCTS 2021 that show that workers in the services sector experienced more adverse social behaviour, especially those working in the health sector[10]. Adverse social behaviour includes verbal abuse and threats, bullying, harassment or violence, and unwanted sexual attention.
However, despite being part of the service sector, there are also crucial differences between each sub-sector in relation to psychosocial working conditions. Specific psychosocial working conditions in public administration, healthcare, and hotel and restaurants have been covered in other articles, and consequently, the following sections will outline and discuss psychosocial risks in service sub-sectors such as transport, financial and banking, postal and telecommunication, and retail sectors.
Transport sector
The transportation sector encompasses a range of transportation forms, including cars, airlines, trains, trucks, and ships. As well as encompassing various job roles, such as: taxi drivers, ticket conductors, customer service representatives and flight attendants. In general, these workers in particular are exposed to higher work intensity, lower social support and increase exposure to adverse social behaviour than most other sectors and other service-subsectors[11].
During the COVID-19 pandemic transport workers were among the occupations that played a critical role in providing essential services and supporting the functioning of our society[12]. A Eurofound study on the quality of work of these 'COVID-19 pandemic essential workers', based on data from the EWTCS 2021, found that the quality of work for transport workers was worse than average. A large proportion of transport workers reported difficulties in making ends meet and lacked organisational participation and formal representation at work12. Transport workers are also faced with a high level of job insecurity (the highest among all essential workers) and unsocial work schedules[12]. Workers in this industry report problems such as having to work long hours, being understaffed, time pressures, dealing with difficult members of the public, and poor equipment[11] [4] [13] [14] that contribute to a deterioration in the quality of the psychosocial work environment. Furthermore, accidents and suicides on the road and rail network can be a traumatic and stressful experience for exposed drivers and transport staff[4] [15]. These risks are exacerbated by a general lack of social support, the high prevalence of lone work[11] and limited job autonomy[12]. Overall, job quality in the transport sector is low with the sector ranking second in terms of strained jobs (42%) just behind the health sector (45%)[10]. The combination of increased exposure to various psychosocial risks and insufficient social support can ultimately lead to serious health issues. More than 50% of transport workers report feeling that their health and safety is at risk because of their work, compared to an average of 38% for all sectors[12].
Workers in the transport sector are especially vulnerable to violent and harassing behaviours at work. Their tasks typically include: the provision of information to and the supervision of members of the travelling public; the control of tickets; and the prevention of vandalism and violent behaviour[4]. Such behaviours from passengers may be triggered or exacerbated by passengers under the influence of alcohol or drugs, delays, lack of information, poor environmental conditions (e.g., poor lighting, a lack of fresh air supply), and a failure to meet clients’ expectations[16]. Moreover, staff on long distant flights and rail journeys may face added risk due to the prolonged exposure they have with passengers, and the lack of options to withdraw from the situation[11]. The EWCTS 2021 showed that adverse social behaviour and discrimination was second most prevalent in the transport sector, with women reporting the highest levels of discrimination in this sector. More men (12%) than women (10%) experienced verbal abuse[10].
Retail
A large number of retailers are operating in markets that are increasingly characterised by intense competition, decreased store loyalty and expanding price pressures. Despite this they still have to focus on providing excellent customer service[1]. Consequently, the retail sector is characterised by part-time, weekend work, and increasing use of shift working to cover extended opening hours, with a high staff turnover[17]. As a result, retail workers often face high job demands and a poor work-life balance[9]. Research shows that evening shifts and short shift intervals are common in the retail sector[18]. It is also a sector where many workers are employed on short-term contracts of less than a year, which creates a lot of job insecurity. Data from the EWCTS show that 10% of employees in commerce and hospitality work on short-term contracts. This puts the sector in third place after education (14%) and health (11%)[10]. Temporary workers in commerce and hospitality have fewer opportunities for learning and training and less autonomy than permanent workers[19]. Moreover, the sector was heavily affected during the COVID-19 pandemic. The data show that the occupation most affected by the pandemic was that of sales worker, and that about two out of three job losses were among female workers. Given the high level of social contact required in this job, workers' activities were severely curtailed during the pandemic, which is likely to have been an important factor in job losses[20].
Banking and finance sector
Jobs in the financial services sector are typically characterised by working to tight deadlines and at high speed, as well as having a high degree of autonomy. In the EWCTS 2021, financial services workers were the most likely to report having autonomy over the pace of their work (60%).
The EWCTS 2021 also showed that the workers in the financial sector have the highest share of employees reporting working more hours than contractually obliged10. At the same time, teleworking has become well established in the financial sector. Among employees who worked both at their employer's premises and at home, the highest rates of teleworking are found in education (34%), followed by financial services (27%)[10]. Overall, job quality in the finance sector is high with the sector ranking first in terms of resourced jobs[10].
Postal and telecommunication
As postal and telecommunication companies seek to remain competitive, they are diversifying the services that they offer, which may include: financial and insurance services; issuing and renewing of documents (i.e. drivers licenses); and utilities payments[21] [22]. The growth of digital services and technological changes have transformed customer needs and increased the electronic substitution of traditional postal services reducing the use of traditional letters, On the other hand, digitalisation has accelerated the growth of e-commerce leading to a significant increase in the number of parcels and packages transported by postal operators[23]. These changes and extra responsibilities place even more demands on employees working in the postal and telecommunication services[22]. This is compounded by the additional vigilance they need to place towards suspect (i.e. contraband, incendiary devices) and valuable packages[24]. They face additional pressure to deliver packages and services on time, despite, for example, adverse weather conditions[22]. Furthermore, postal and telecommunication workers also face aggression from the public, which can occur at over the counter services or on delivery routes. The latter is of particular concern where workers frequently work on their own, and in neighbourhoods or buildings where they might have little control in[25]. Digitisation in the postal sector is closely linked to the global trend towards privatisation of formerly public or state-owned services leading to an increase in precarious forms of employment, such as subcontracting and temporary work. The introduction of algorithmic work control may also lead to increased surveillance and work intensification[26].
Call centre workers are a sub-group of workers in this sector whose psychosocial hazards have been extensively studied[27] The evidence indicates that call centre workers frequently work long unsociable hours, are faced with high time demands, little control over their work pace or structure, low complexity tasks, emotional exhaustion at work and unclear job roles[28] [29] [30] [27] [9]. Furthermore, the impact of digitalisation, new forms of work and algorithmic monitoring on call centre workers is significant, affecting various aspects of their work and working conditions. As digital tools streamline tasks, workloads often increase as workers are expected to handle more calls or more complex tasks in less time. New forms of work, such as platform-based or gig employment, are increasingly common in the call centre industry. This shift towards precarious employment reduces job security, benefits and access to stable working hours. Digitalisation has facilitated the global outsourcing of call centre work and the rise of remote or home-based work. While remote work can offer flexibility, it can also increase isolation, reduce access to social support and blur the boundaries between work and private life. Call centre workers are often subject to extensive real-time monitoring, including the use of AI and algorithms to track performance such as call handling time, customer satisfaction, adherence to scripts and other AI-based tools (e.g. to evaluate workers' speech patterns to force them to sound more enthusiastic)[31]. The use of such AI-based worker management systems may put pressure on workers to work faster, leading to more work-related stress[31].
Health outcomes
With regards to health outcomes, data from the OSH Pulse survey [32] show varying results for different subsectors. Several work-related health problems are more common in services sectors compared to the average for all sectors. This is especially the case for higher education health and education sector.
Table Work-related health problems (%, by sector of activity) – OSH Pulse 2022
In the last 12 months, have you experienced any of the following health problems caused or made worse by your work
Note: Sector results above the EU average for all sectors are indicated in italics
| Stress, depression or anxiety | Bone, joint or muscle problems or pain | Infectious diseases (including COVID-19) | Headaches, eyestrain
| Accident or injuries
| Overall fatigue
| Another health problem related to your work | None of these
|
|---|
| Administration and support services, including public administration and defence | 27 | 27 | 20 | 37 | 4 | 35 | 5 | 34 |
| Commerce, transport, accommodation or food services | 28 | 33 | 19 | 33 | 6 | 40 | 6 | 31 |
| Information and communication technology; finance; professional, scientific or technical services | 30 | 27 | 15 | 39 | 3 | 37 | 5 | 33 |
| Services relating to education | 31 | 25 | 29 | 39 | 3 | 39 | 7 | 30 |
| Services relating to health or social care | 30 | 34 | 28 | 35 | 6 | 41 | 7 | 29 |
| Social, cultural, personal and any other service | 26 | 32 | 21 | 33 | 5 | 35 | 5 | 33 |
Average
All sectors | 27 | 30 | 21 | 34 | 5 | 37 | 6 | 33 |
Source[32]
Psychosocial risk management interventions
Before any psychosocial intervention programme is conducted, a risk assessment should be carried out to correctly identify the psychosocial hazards present in the workplace[33]. Identified risks can then be addressed using a two-prong approach by making changes at, first of all, company level, and second, if needed, individual level, with a strong focus on prevention. As most psychosocial hazards in the service sectors are not unique to this sector, more specific information on psychosocial risk management can be obtained elsewhere. Consequently, the sections below present preventative strategies, and examples specific to the service industry. Interventions relevant to the healthcare, public administration, and the hotel and restaurant sectors sectors are also presented and discussed in other articles.
Risk assessments
Ensuring that a risk assessment is conducted is part of the employer’s obligation under OSH Framework Directive (89/391/EEC)[34] .The size of the group and the nature of the work in the organisation need to be taken into consideration when selecting risk assessment methods and tools. Risk assessments should always be carried out within a specific and defined group and based on reliable data and information. Employers should work together with employees during the risk assessment process, and management support is essential for making positive change. EU-OSHA has developed a web application (tools generator) to create interactive risk assessment tools (OiRA tools). These OiRA tools enabling micro and small companies to carry out risk assessments are continuously being developed by national OiRA partners, by EU-OSHA and by the EU sectoral social dialogue partners. Several tools targeted to the services sector are available (e.g. hospitality, retail, public transport). An overview can be found on the OiRA website[35].
When conducting risk assessments, organisations should be aware that there are also specific EU/national level policies that have been implemented to address some of the working conditions faced by employees in the service sector. For example, the European Parliament’s Directive 2002/15/EC was passed to organise the working time of drivers of mobile road transport activities[36].
Primary interventions
Addressing psychosocial hazards should be based on implementing preventative measures. This means focusing on policies, work practices and programmes that seek to prevent or reduce the actual psychosocial hazards identified in the risk assessment. For example, adjusting shift length based on workload, and a reduction in night shifts might alleviate stressors faced by call centre workers in the telecommunication sector, thereby enhancing their health and well-being[37]. Also, enhancing job control and supervisory and co-worker support may protect the mental well-being of call centre workers9. Within the banking and financial sector, increasing staff numbers or revising workload based on staff numbers, adjusting performance targets, and developing flatter management structures are possible organisational changes that can be made to address heavy workloads and poor management structures in the workplace[38].
These measures can also include physical changes in the work environment, which are particularly appropriate in addressing violence and aggressive behaviour. These can include the inclusion of security hardware, video recording and lighting to protect workers from such behaviour[4]. Some examples of implemented solutions in the service sector are inclusion of panic buttons for taxi drivers[4] and the prevalent use of video recording in public transport and retail spaces across Europe[39].
Secondary interventions
Secondary measures focus on enhancing workers’ capability and resources to cope with psychosocial hazards they come into contact with. For example, Villani and colleagues[40] found that developing resilience through stress management training delivered by mobile phones to a sample of Italian oncology nurses’, resulted in better coping and reduced anxiety compared to those who did not undergo the training. The development of soft skills is also fundamental to the work of postal workers to help them cope with growing demands brought on by changing customer needs and digital technologies, which requires a more agile organisational design to respond to increasingly temporary and unpredictable situations[23]. In terms of violence, the London Underground and the Dutch railways are some examples of public transportation companies that run specific training to equip their employees in dealing with aggression and violence from the public[4] [41]. These include discussions and role plays on identifying potential triggers of violence and defusing threatening situations.
Summary
The article presents specific psychosocial risks in the service sector, focusing on sub-sectors such as retail, transport, banking and finance and the postal and telecommunication sectors. Although there is not as much research literature available as for other sectors, it has been demonstrated that the most prevalent psychosocial hazards in these sub-sectors include: high quantitative demands (workload), high client/customer/patient demands (including violence and harassment), low control, low rewards, low support and interpersonal conflict (bullying and harassment). In order to address these hazards, they first have to be identified through the risk assessment. Whilst primary prevention (eliminating risks) is recommended, in some cases this might not be possible. When this is the case secondary interventions that seek to equip workers the resources to cope with the stressors in the workplace can be implemented.
